Globalisation and its discontents: an Indonesian perspective

It is indeed a great honour for me to give the 2011 Heinz Arndt Memorial Lecture. The first time I met the great Professor Heinz Arndt was as a nine‐year‐old back in 1966 when our family first came to Canberra and Heinz was my father's (Panglaykim) new boss. I recall that he picked us up at the airport and within the first week we had visited his house in Deakin, where he gave me and my two brothers games such as Chinese checkers and books that his own kids had outgrown. So my first thought was: what a kind and thoughtful man. Little did I know that I would end up being what he often termed his ‘academic grandchild’. I never took a class from Heinz or was fortunate enough to be supervised by him. However, I had many interactions with him when I was a student at the Australian National University (ANU) and, upon graduation, as an aspiring young academic. He had an important influence on the course of my life. First, he encouraged me to do my PhD in the USA. After I completed my masters at the ANU under Peter Drysdale, I toyed with the idea of continuing with a PhD at the Research School of Pacific Studies. However, Heinz convinced me to go to the USA because he thought it would widen my horizons. He was right. Second, there was the importance of being disciplined and thorough in undertaking country or regional research. One of the most important initiation exercises for an academic working on Indonesia was to do a ‘Survey of Recent Developments’ for the Bulletin of Indonesian Economic Studies. I recall being given a yellowed document that had been formulated by Heinz with precise guidelines on topics, structure, and people to see and interview. We found similar guidelines on regional surveys when we did economic surveys of all the provinces a few years later. I found that doing the research and interviews for the survey was the easy part. The hard part was the two weeks spent in Canberra writing up the survey and being subjected to peer review. The draft was presented to the ‘editorial team’ and others, including, of course, the venerable Professor Arndt. I am glad to say that I passed in terms of substance; but of course there were lots of edits to do following Heniz's traditional typed‐up comments, both general and specific! Third, despite being a formidable figure and someone with a reputation for strong opinions, Heinz was the same kind and thoughtful man I remembered as a nine‐year‐old. He always had the time of day for the young academics, especially those from Indonesia. I had many cups of tea with him as a student and later as an aspiring academic. I still recall his room in University House filled with his books and the filing cabinet near the bathroom, where he would inevitably pull out the right references and reading materials that one needed. I learned a lot about the importance of mentoring and encouraging the young—many of whom have succeeded and are in the room today. This lecture is to honour Professor Heinz Arndt. I believe Professor Arndt was a true internationalist and therefore he would tackle with gusto the rumblings of discontent on globalisation. He would be thorough in trying to understand the manifestations of globalisation and its sources of discontent. He would also be of the firm belief that the benefits of globalisation outweigh its costs and come up with strategic ideas on how to best manage globalisation to counter ‘globaphobia’. I hope I do justice to this topic in the Heinz Arndt tradition.     

Urbanization without growth in historical perspective

The world is becoming more and more urbanized at every income level, and there has been a dramatic increase in the number of mega-cities in the developing world. This has led scholars to believe that development and urbanization are not always correlated, either across space or over time. In this paper, we use historical data at both the country level and city level over the five centuries between 1500–2010 to revisit the topic of “urbanization without growth” (Fay and Opal, 2000). In particular, we first establish that, although urbanization and income remain highly correlated within any given year, urbanization is 25–30 percentage points higher in 2010 than in 1500 at every level of income per capita. Second, while historically this shift in urbanization rates was more noticeable at the upper tail of the income distribution, i.e. for richer countries, it is now particularly visible at the lower tail, i.e. for poorer countries. Third, these patterns suggest that different factors may have explained the shift in different periods of time. We use the discussion of these factors as an opportunity to provide a survey of the literature and summarize our knowledge of what drives the urbanization process over time.     

Integrated rural development programmes: A historical perspective

The pervasive poverty in rural areas has represented a continuing concern of national governments and development assistance agencies. One response to pervasive poverty has been the design of local institutions to enable rural communities to mobilize their own resources to generate growth and improve the quality of life. Programmes organized under the rubric of ‘community development’ were a major focus of development assistance during the 1950s and early 1960s. During the early 1970s concern about the distributional implications of economic growth again emerged as a major theme in development thought and development policy. This concern gave rise to two new development assistance approaches — ‘integrated rural development’ and ‘basic needs’ programmes. In this paper, I attempt to trace the development, accomplishments and limitations of the community development, integrated rural development and basic needs approaches.     

Land and development at Indaleni: A historical perspective

This paper reviews the history of land allocation, land use and also some of the major attempts made over the last century to introduce change and what is now popularly referred to as development at Indaleni, a black community which is predominantly Zulu, but where there has been a strong white mission presence for over a hundred years. It is argued that the missionaries and colonial administrators of the last century were the forerunners of many of the interest groups active in the development field at Indaleni and elsewhere in KwaZulu/Natal today. Although the aims of intervention have changed, the high‐handed methods and above all the certainty with which many outsiders approach ‘development’ has not. Chronicled also are white attitudes to granting freehold land tenure to blacks in Natal and consideration is given to the reasons why the first missionaries to work at Indaleni failed to achieve their aim of not only converting local people to Christianity, but of equipping them with skills to compete with whites in an integrated social and economic community.     

A tale of two SICs: Japanese and American industrialisation in historical perspective

Late‐developing countries often adopt best practice technologies pioneered abroad, facilitating convergence toward leading economies. Meiji Japan (1868–1912) is one successful example of industrial convergence, but much of the evidence relies on national aggregates or selected industries. Using historical industry data, this paper examines whether Japan adopted new technologies faster compared to the United States. Contrary to conventional wisdom, new sectors did not appear relatively sooner in Japan, however, they did grow to economic significance faster.     

Globalisation and Agricultural Trade

For most of the past 10,000 years, long-distance agricultural trade has focused on crop seeds or cuttings, breeding animals, and farm production technologies, before the dramatic falls in trade costs over the past two centuries allowed the gradual addition of farm outputs in raw or processed form to long-distance trade. That process was helped or hindered in various periods and places by governments' trade-related policies. This paper traces the impact of those developments on terms of trade during the first globalisation wave to 1913 and then looks briefly at the inter-war period, before concentrating on the period since the 1950s.     

Globalisation and competition policies

Globalisation and Competition Policies. — This paper discusses the nature of globalisation and its relationship to cross-country competition in the markets for tradeable goods and services. It emphasises the dual modes of cross-border supply, namely, international trade and international production. These have given rise to new international dimensions of competition policy. The paper surveys these dimensions and considers the desirability of harmonising competition policies of different nations and other options such as the development of multilateral competition policies under the WTO.     

印度的全球化与社会排他性

绪论 全球化包括国家、地方的经济以及社会的不断整合.这种整合是通过更广阔、更自由的资本、商品和服务的流通来进行的.在一定程度上,它是新科技所导致的一种自然和必然的结果.在很大程度上它又是被国际组织和占统治地位的经济体或国家政府以及各国的经济中坚力量所推进.绝大部分缺少技术、经济实力和政治资本的人是没有地位和权利来选择能否参与构建全球化的内容及规则.有人认为全球化为经济增长提供了更广阔的机遇,并将有益于全世界也包括贫穷的国家和人民.就这一点来说,全球化与过去几十年中一些国家和国际组织采用的一些发展战略和政策是相似的.但是,他们在保证平等方面的大多数承诺,总是不能成功.发展的利益被不平均的分配,一些群体被遗忘,而带给另一些人的则是负面的影响,甚至导致出现更恶劣的社会经济状况.     

Financial Globalisation and the Crisis

The global financial crisis provides an important testing ground for the financial globalisation model. We ask three questions. First, did financial globalisation materially contribute to the origination of the global financial crisis? Second, once the crisis occurred, how did financial globalisation affect the incidence and propagation of the crisis across different countries? Third, how has financial globalisation affected the management of the crisis at national and international levels?     

Globalisation and the European disease

Summary This paper analyses the impact of globalisation of economic relationships on the European labour market. The main finding is that Europe's unemployment problem is rooted in rigidities in the labour market itself, while the increasing importance of international trade should provide an opportunity to reduce long-term labour market slack. To reap the potential benefits in this respect, European governments would need to re-orient structural policies towards a better functioning of labour and product markets.Organisation for Economic Co-operation and Development (OECD), Economics Department, Paris. The author is indebted to several of his colleagues in the Economics Department — in particular Bob Ford, Katie Gordon, Wim Suyker, Thorsteinn Thorgeirsson, and Nick Vanston — and two anonymous referees for their useful comments on an earlier draft. The views expressed in this paper are those of the author and should not be attributed to the Organisation or the governments of its member countries.